Rhodia Completes Two Divestitures

PARIS -- Rhodia announced the finalization of two divestitures
initiated during the second quarter 2005:

The
sale of its European cartridge silicone sealants business to Henkel, following
the agreement signed August 8 ;

The sale of its phosphates and sulfuric
acid manufacturing businesses at its site in Rieme to Misa Inc., following the
agreement signed September 2.

These divestments
form part of the divestiture of non strategic activities being undertaken by the
Group with a view to refocusing its business portfolio.

Finalization
of the sale to Henkel of its European cartridge silicone sealants business

Following
the announcement on August 8 of an agreement to sell its European cartridge silicone
sealants business to Henkel, Rhodia today announced the sale has been completed.
This business, which generated sales of more than 50 million euros in 2004, comprises
the production and distribution in Europe of a wide range of silicone sealants
sold in cartridge form for the construction and Do-It-Yourself (DIY) markets.

The Rhodia Group will continue, through its Silcea Enterprise,
to develop and manufacture core intermediates as well as bulk silicone sealants
and market them in Europe and the rest of the world.

Henkel
- A Brand like a Friend. Henkel is a leader with brands and technologies
that make people's lives easier, better and more beautiful. The Henkel Group operates
in three strategic business areas  Home Care, Personal Care, and Adhesives,
Sealants and Surface Treatment. In fiscal 2004 the Henkel Group generated sales
of 10,592 billion euros. More than 50,000 employees work for the Henkel Group
worldwide. People in around 125 countries around the world trust in brands and
technologies from Henkel.

Finalization of the sale to
Misa of its phosphates and sulfuric acid manufacturing businesses in Rieme

Following
the announcement on September 2 of an agreement to sell its phosphates and sulfuric
acid manufacturing businesses at its site in Rieme (Belgium) to Misa Inc., Rhodia
today announced the sale has been completed.

This transaction
marks a further step in Rhodias withdrawal from the phosphates area.

Misa
Inc. is an affiliate of Uganda based Madhvani International engaged in the development
of projects in the industry, energy, agriculture and infrastructure sectors.

Rhodia
is a global specialty chemicals company recognized for its strong technology positions
in applications chemistry, specialty materials and services, and fine chemicals.
Partnering with major players in the automotive, electronics, fibers, pharmaceuticals,
agrochemicals, consumer care, tires, and paints and coatings markets, Rhodia offers
tailor-made solutions combining original molecules and technologies to respond
to customers needs. Rhodia subscribes to the principles of Sustainable Development
communicating its commitments and performance openly with stakeholders. Rhodia
generated net sales of €5.3 billion ($6.9 billion) in 2004 and employs 20,000
people worldwide. Rhodia is listed on the Paris and New York stock exchanges.